Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 6.00%, lower than industry average of 12.45%.

Growth Trajectory

Profitability

In the growth phase company makes 22.92% profit on every dollar of sales, higher than industry average of 19.13%.

Profitability Trajectory

Risk Profile

Investors expect at least 9.94% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
59.64B USD
Equity Value
50.08B USD
FCF Yield
57.94%
Average ROIC
29.92%
Cost of Capital
9.53%
P/E Ratio
16.90x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues24.60B USD24.57B USD
Operating Income or EBIT5.81B USD6.01B USD
Interest Expense1.02B USD1.19B USD
Book Value Of Equity4.29B USD3.84B USD
Book Value Of Debt13.73B USD13.66B USD
Cash and Marketable Securities4.21B USD7.73B USD
Number of Shares Outstanding532.63M--
Minority interests52M USD0 USD
Current Stock Price153.08 USD--
Effective Tax Rate17.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-12.34%
0.10%Company
vs
12.45%Industry
Below Industry
Operating Margin
+4.49%
23.62%Company
vs
19.12%Industry
Above Industry
3M Company demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 55% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 32.72B USD Add
Present Value (Cash Flow Over Next 10 Years) 26.92B USD Add
Value of Operating Assets 59.64B USD Sub-total
Debt 13.72B USD Subtract
Minority Interests 52.00M USD Subtract
Cash 4.21B USD Add
Value of Equity 50.08B USD Sub-total
Number of Shares 532.63M shares Divisor
Estimated Value per Share (Fair Value) 94.03 USD Total
Current Market Price 153.08 USD Reference

Financial Projections

Total FCF Present Value
26.92B USD
Avg Revenue Growth
4.76%
Avg Operating Margin
22.76%
Avg ROIC
29.92%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue25.28B USD26.80B USD28.40B USD30.11B USD31.91B USD33.74B USD35.57B USD37.41B USD39.24B USD41.04B USD42.93B USD
Growth Rate 2.77% 5.99% 5.99% 5.99% 5.99% 5.71% 5.43% 5.15% 4.87% 4.59% 4.59%
PROFITABILITY
Operating Income5.97B USD6.20B USD6.51B USD6.83B USD7.16B USD7.57B USD7.99B USD8.40B USD8.81B USD9.21B USD9.64B USD
Operating Margin 23.62% 23.15% 22.92% 22.69% 22.45% 22.45% 22.45% 22.45% 22.45% 22.45% 22.45%
EBIT (1-tax)4.95B USD5.15B USD5.40B USD5.67B USD5.95B USD6.16B USD6.37B USD6.57B USD6.75B USD6.91B USD7.23B USD
CASH FLOW
Reinvestment911.70M USD966.39M USD1.02B USD1.08B USD1.09B USD2.20B USD2.20B USD2.19B USD2.17B USD2.26B USD3.76B USD
Free Cash Flow4.04B USD4.18B USD4.38B USD4.58B USD4.85B USD3.96B USD4.16B USD4.37B USD4.58B USD4.64B USD3.46B USD
Terminal Value--------------------81.90B USD
Present Value3.67B USD3.46B USD3.29B USD3.13B USD3.02B USD2.24B USD2.16B USD2.07B USD1.99B USD1.85B USD—
EFFICIENCY
ROIC 35.91% 35.00% 34.47% 33.95% 33.44% 32.66% 30.23% 28.20% 26.47% 24.99% 8.83%
Cost of Capital 9.94% 9.94% 9.94% 9.94% 9.94% 9.72% 9.49% 9.27% 9.05% 8.83% 8.83%
Sales/Capital 1.66x 1.66x 1.66x 1.66x 1.66x 0.83x 0.83x 0.83x 0.83x 0.83x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)